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Seed Funding For A Business

Please note: we do not provide seed funding! This is for educational purpose only.

Today there are many ways to get seed funding for a business. The old traditional way was to go and ask the bank manager for a business loan. As there are problems in the economy and banks are being a lot more frugal with commercial loans, people need to look elsewhere to get the right loan to suit their business requirements.

Crowd Funding | Joint Venture | Angel Investors

Nowadays, there are other alternative ways to get seed funding other than relying on mainstream business banking. Companies can now source funding publicly through crowdfunding or privately through investment banks. Structured funding can be done through equity stakes or through debt finance.

How To Apply For Seed Funding

The information above is for those who are looking for seed funding for a small project or business. In order to get seed funding for a large projects there are ways in which this can be done.

First is to set up an form your company. Funders need business information to actually lend money to and it looks more professional that this has already been done, if you can build a website to go with it. If you have patents/licensed/agreements this is beneficial and should be submitted to the financiers. Another good idea is if you are a startup leisure resort or real estate project, have an agreement with a hotel chain, let the funders know!

Seed Funders

Crowd Funding

This is where individuals engage in a world where people are prepared to invest small amounts of money into a thought out idea. These crowdfunding platforms allow the creators to showcase their creativity to enable funding growth through the platform. Usually these businesses are novel ideas and aim to solve important problems.

Crowdfunding pros and cons:



Joint Venture

You can get Joint Venture seed capital  either for a small or large project. The pros and cons are :



Angel Investors

As you can see from the graph below, asking angel investors / business angels is quite risky. These types of lenders usually have a seed cap of $1 Million USD therefore if you are looking to raise capital for large project, this is not the source to use.

Angels are very wealthy individuals/groups who have made money grafting their own seed business to successful business growth. They are willing to invest in business start ups for two reasons: they understand your situation, and they’re a credible source of contacts and advice.

Angel Investors are a great source for businesses looking for seed capital because they are a useful contact and give sound advice which can be more important than the money. With angel investors, we’re now talking about proper venture funding, so it’s time to introduce the concept of “the exit strategy”. Many business founders are often surprised that investors expect them to sell the company or go public (IPO). The reason why angel investors do that is that investors want their capital back.

Angel Investor Pros and Cons:




Start Up Business Finance

This is where Prestige Capital Partners can assist you. Project funding is an innovative financing technique that is used for multi million dollar corporate projects. Many buildings, bridges and infrastructure have been carefully engineered using this type of funding model. Project funding has long been used to finance large-scale projects from mining refineries to electric-generating facilities and hydro-electric projects. Increasingly, project funding is emerging as the preferred alternative finance model to conventional methods of financing structures. There are many types of lenders who use different techniques to raise capital as ther is no “one size fits all” loans.

The different types of lenders can differ depending on the type of financing you want, whether its debt, equity or hybrid loans. New ways entrepreneurs are looking at having full control of their money is by purchasing their own bank instrument, having it monetized and on a trade platform. These bank instrument have been used for years to fund projects.

Funding a Startup business can be quite challenging, especially if you are looking for amounts larger than $10 Million USD. Given the funding options above, this may not be suitable for your business model. If you want funding for your business, some entrepreneurs think that they can just apply for a full loan and are given a grace period to pay it back. There’s only a few circumstances that we have heard of where lenders have given 100% project finance, (read our case study for a real estate project to understand the lender process).

One way a project principal can help themselves is by asking a bank to get a bank loan or some private investors. (We have some Private investors, they are very selective on certain projects.)

Considerations to raising capital for a business is as follows:

Our website should help inform you of the possible business funding solutions for start ups. Nearly all lenders who fund large projects ask project owners to pay towards the fees or some costs.  Our funders can provide up to 80% debt funding, the list of funders above could provide you with the extra 20%.

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